10:45 AM EST, 02/14/2025 (MT Newswires) -- Walmart's ( WMT ) fiscal Q4 comparable sales growth will decelerate from the previous quarter but there is a potential for upside based on credit & debit card data from Bloomberg Second Measure, BofA Securities said in an earnings preview of Friday.

Walmart's ( WMT ) earnings are scheduled for Feb. 20.

The company is strengthening its market share across various income groups and product categories due to its strong value proposition, high digital convenience, store remodels, an expanded online stock-keeping unit portfolio and improved express delivery capabilities, the firm added.

BofA said that growth in digital advertising, third-party marketplace fees, and fulfillment services is providing Walmart ( WMT ) with significant margin support by offsetting challenges from a shifting sales mix.

Continued improvements in e-commerce profitability, such as a 40% reduction in US net delivery costs per order, are expected to further expand gross margins, the firm said.

BofA raised its price objective on the company's stock to $120 from $110 and reiterated its buy rating.

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